Mainvest Review Introduction
Previously, investing in local businesses before they appear on the stock market was something open only to private and accredited investors. The increasing democratization of the markets means that ventures like Mainvest are opening up this investment avenue for the first time.
There are no investment fees, and you can put your money into a huge range of businesses with a minimum of just $100. Advertised returns range from 8% to 10% and you get the chance to invest in local communities across the U.S.
Keep reading our Mainvest review to get the details on how this platform is supporting local communities and providing a new way for non-accredited investors to make money.
What is Mainvest?
- Live web chat, email, phone support.
Mainvest’s philosophy is about allowing ordinary Americans to invest in Main Street rather than Wall Street. This business investment platform was founded in Salem, Massachusetts, in 2018 by current CEO Nick Mathews. Thus far, the platform has raised $3 million in seed funding.
Since its formal launch in 2019, there’s only a limited track record. However, the platform vets all businesses before opening them up to investors. Not all businesses pass the vetting platform, so there’s only a limited number of investments available at any one time.
How Does Mainvest Work?
Our review on Mainvest cannot be more excited at being able to invest in ordinary businesses. While not as stable as a stock market investment, this is one way to use your money where you can see the true value in your capital.
So how does Mainvest make its money when it charges $0 in investment fees?
Its business model is based on charging the businesses themselves a portion of the investment raised. As of this writing, businesses that successfully receive investment funds from Mainvest must pay 6% of whatever they raise. This allows the service to remain completely free for investors.
You can invest in both debt and equity opportunities for a minimum investment of $100. All you need is a local U.S. bank account and proof of citizenship or residency.
Equity investments are by far the most popular option. With an equity investment, you get paid a percentage of the business’s revenue per financial quarter until you receive your specified investment multiple.
Mainvest provides a huge amount of data to help you analyze businesses. They include documents like:
- SEC filings
- Income statements
- Balance sheets
- Financial projections
This wealth of content, alongside their general investment education content, empowers less experienced investors to make informed choices with their money.
There are no fees charged to investors when they create an account with Mainvest. Other fees that are absent from this platform include administration fees and management fees. The only rule is you need to have at least $100 to invest.
Instead, 6% of the money raised by businesses must be paid to Mainvest by the business itself.
As a new and relatively untested platform, you likely have a lot of questions. Here are some of the most common queries had by investors.
What Investments Does Mainvest Offer?
All of Mainvest’s investments are in local businesses. You’ll find companies run by ordinary Americans, such as bakeries, restaurants, breweries, and beauty salons.
Will I Get My Money Back?
Under the terms of investment, businesses are required to repay your investment multiplier regardless of their actual revenue. The only way you don’t get your money back is if the business is physically unable to. In other words, there’s always a risk that the business goes bankrupt.
Is Mainvest a Legitimate Investment Platform?
Yes, Mainvest is a Title III Funding Portal registered with the SEC. This means that they’re subject to stringent rules regarding the investor education they provide, and the due diligence carried out on businesses.
Your money is safe when investing through Mainvest.
Is Mainvest Right for You?
Our review on Mainvest concludes that while this is a legitimate company, it comes with far greater risk to investors than ordinary publicly traded stocks and exchange-traded funds (ETFs). Beginners who aren’t used to doing due diligence may want to stick to more conservative investments.
The lack of a long-term track record is worrisome, but of the few successful investments thus far there have been returns of up to 10%.
Its support materials for investor education and responsive customer service are ideal for getting started. With a low minimum investment, there’s no reason not to invest a small amount of money on Main Street.
Create an account with Mainvest and diversify your portfolio now.